"Insurer virtual cards: what a body shop should check before processing one"
"Source","https://bluefinchadvisors.com/blog/body-shop-insurance-virtual-card-payment-cost"
"Basis","This planning scenario uses the values entered. It is not an industry benchmark or a quote."

"Inputs","Value","Unit"
"Insurer remittance","12000","currency"
"Virtual-card acceptance rate","3.2","percent"
"Card transaction fee","0.25","currency"
"Alternative direct fee","5","currency"
"Additional handling minutes","15","number"
"Loaded hourly office cost","36","currency"
"Extra days until available funds","7","number"
"Annual cash-carrying rate","12","percent"

"Results","Value","Unit"
"Virtual-card cost","384.25","currency"
"Alternative modeled cost","41.61643835616438","currency"
"Card cost minus alternative","342.6335616438356","currency"

"Calculation detail","Value","Unit"
"Alternative handling cost","9","currency"
"Extra waiting cost","27.616438356164384","currency"
"Net virtual-card proceeds","11615.75","currency"

"Assumptions"
"All defaults are illustrative; alternatives and fees must be confirmed with the payer and processor."
"Delay cost uses simple interest on a 365-day basis. The alternative pays the same gross amount."
"The comparison excludes unquantified return, dispute, fraud, and collection risk."

"Result notes"
"Do not process a virtual card and also request a replacement payment without clear payer instructions."
"This model does not authorize surcharging, changing a deductible, or increasing an insurer remittance."

"Sources"
"Commerce Bank: Virtual cards for insurance claims payments","https://www.commercebank.com/business/trends-and-insights/2020/what-you-need-to-know-about-virtual-credit-card-programs-when-it-comes-to-insurance-claims-payments"
"Visa: U.S. merchant surcharge questions and answers","https://usa.visa.com/dam/VCOM/global/support-legal/documents/merchant-surcharging-qa-for-web.pdf"
"OCC: Availability of deposited check funds","https://www.helpwithmybank.gov/help-topics/bank-accounts/funds-availability/funds-availability-check.html"
"PCI SSC: Card verification code storage","https://www.pcisecuritystandards.org/faq/articles/Frequently_Asked_Question/Can-card-verification-codes-values-be-stored-for-card-on-file-or-recurring-transactions/"
"Stripe: Refund and cancel payments","https://docs.stripe.com/refunds"